Which Statement Is Not Consistent with the Law of Supply

question 19

Multiple Choice

Which statement is not consistent with the law of supply?

• A) More of a good will be supplied, the higher the price, other things constant.
• B) Less of a good will be supplied, the lower the price, other things constant.
• C) Quantity supplied of a good is directly related to the good's price.
• D) Quantity supplied of a good is inversely related to the good's price.

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Definitions:

Birth Control Pills

Medication taken orally to prevent pregnancy, often considered a qualified medical expense for health savings accounts.

Deductible Interest

Interest payments on loans (such as mortgage or student loans) that can be subtracted from gross income to reduce taxable income under certain circumstances.

Home Mortgage

A loan provided by a financial institution to a borrower for the purchase of a residential property, secured by the property itself.

Tax-Exempt Securities

Investments whose interest income is not subject to federal income tax, and in some cases, state and local taxes.